Car rental, fleet management and leasing group Zeda is making progress on its strategy to reduce its environmental impact after delivering its first batch of EV trucks and reporting a double-digit rise in hybrid vehicles.
To mitigate environmental effects of emissions stemming from its operations, the company has been rolling out hybrid vehicle solutions across the business.
The board approved a strategy in the 2023 financial year to embed ESG into the business.
For the year to end-September, Zeda said the number of hybrid vehicles rose 16% and it delivered the first batch of EV trucks to a last-mile customer..
CEO Ramasela Ganda said the group’s approach is to adopt a people-centred approach to doing business, primarily focused on the safety and wellbeing of employees and fostering a zero-harm culture.
“We have developed and presented to the board an ESG strategy with the vision to responsibly drive the way to a more sustainable future,” said Ganda. “I’m very excited that we’ve delivered our first batch of 10 EV four-tonne trucks.”
The uptake of the lower-emission cars comes as the long-awaited EV policy white paper was finally released by the trade ministry recently to create a comprehensive, lucrative EV road map for the country.
Hybrid cars are less harsh on the environment as they produce lower emissions than regular fuel-powered vehicles. Zeda said it enables its customers to meet their corporate responsibility aspirations and reduce their carbon footprint.
Similarly, electric cars are typically powered by a lithium-ion battery that is charged by electricity, rather than a combustion engine that runs on fossil fuels.
Main segments
The EV road map has outlined two phases for the EV market in SA that will ultimately support the development of an EV production ecosystem with a package of measures designed to maintain and potentially grow production capacity and related jobs.
The group’s two main operating segments are car rental and leasing. Avis and Budget fall under the car rental segment, while leasing includes Avis Fleet, which buys vehicles from various manufacturers that are contracted to customers, such as businesses and government departments, for at least a year.
While environmentally conscious consumers seem keen to take up EVs, macro challenges persist, with the industry calling for a reduction of duties on imported EVs and a consumer incentive scheme to get more local motorists to buy them.
Part of the challenge is that SA’s grid does not produce enough power, causing load-shedding, but the country’s energy supply is still mainly predominantly coal-powered that would erode the environmental benefits of owning an EV.
With the EV rollout and hybrid vehicle increases, Zeda said it has also been focused on safeguarding assets, whether rented, leased or sold.
Zeda has partnered with Discovery Insure to fix potholes amid slow service delivery from the government.
“To improve road safety we are fixing 4,500 potholes a month,” said the CEO. The company is reaping the rewards of a strict safety culture as it reported an improved lost time injury frequency rate from 0.55 in 2022 to 0.18 in 2023.
The car rental and leasing company, which has a long-standing licensing agreement with Avis Budget Group, the world’s largest mobility provider, reported an 18% reduction in electricity consumption and a 94% increase in waste recycling in its operations.
This was the first year the group traded as a separate entity on the JSE after its unbundling from Barloworld on December 13 2022.
Zeda’s share price closed 1.76% lower at R12.81 on Friday, having climbed more than 27% in the last six months.
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